Local government reform in Wales could require a new cadre of section 151 officers, according to the Chartered Institute of Public Finance and Accountancy.
The Welsh Government last week closed a consultation on a white paper which could lead to regional decision making on policy areas such as economic development, transport and planning.
In its response CIPFA said that the role of accountable officers should be included in the development of new financial and governance frameworks for regional working.
The submission said: “A key part of these arrangements is having a formal accounting officer, similar to the role of the section 151 officer in local government, responsible for public financial management.
“This is likely to be a role for any lead partner in the arrangements. However, if the working arrangements are set up under a separate formal organisation structure, an officer, either directly employed or from the funding partners, should be appointed as accounting officer with appropriate responsibilities.”
The Welsh Government is still considering responses to the consultation, but said in the white paper that the nature of the role of chief finance officers, “in the context of greater regional working will be the subject of detailed discussions with local government.”
CIPFA also called for accelerated reform of a proportionate scrutiny and accountability framework (including regulation) from government applying to public sector bodies.
Individual local authorities, in their responses, have also raised a number of concerns about the proposed new arrangements.
Wrexham County Borough Council said: “The degree of complexity is not welcome and funding needs to come via local authorities whenever possible.”
It said that it is currently difficult to understand the cost of providing services at a local level for all services.
“We have looked at a formula for roads,” the response said. “If we use this approach we could start to discuss a pooled arrangement but it becomes very complex and creates additional work.”
Swansea Council gave an extremely cool response to the proposals. “Regional working, taken in the round,” it said, “is more likely to lead to added complexity in terms of financial, governance and support arrangements when resources (financial and human) are at a premium.
“Equally, it will be difficult for members and officers to navigate and almost impossible for the public to hold to account those that they elect.”
CIPFA also cited two previous studies, carried out in 2014 and 2015, which showed that the cost of reorganisation exceeds the sum held in Welsh local authority reserves.
